Answer
437.4k+ views
Hint:First we find an interest for the given data and then we find rate of interest by using the simple interest formula.Also the given data said that the rate of interest is increased. Repeat the above process, we will get the simple interest for the increased rate of interest and find the total amount.
Formula used:$\text{Simple interest = Total amount – Principle}$.
Complete step-by-step answer:
It is given that the Principal amount is \[800\]
Time taken for \[3\] years, Total amount \[\; = 920\]
Increasing interest rate by \[\;5\% \]
First we find
Simple Interest for \[3\] years = $\text{Total amount – Principle}$.
\[\; = 920 - 800 = 120\]
We know that Simple Interest \[ = \dfrac{{Principle \times Time \times Rate}}{{100}}\]
Interest rate\[ = \dfrac{{{\text{Simple Interest}} \times 100}}{{Principle \times Time}}\]
Interest rate\[ = \dfrac{{{\text{120}} \times 100}}{{800 \times 3}}\]
Interest rate \[\; = 5\% \]
Now,
New interest rate\[ = {\text{ }}5{\text{ }} + {\text{ }}5{\text{ }} = {\text{ }}10\% \], Principal \[ = {\text{ }}800\], Time \[ = {\text{ }}3\] years.
Simple Interest\[ = \dfrac{{Principle \times Time \times Rate}}{{100}}\]
Simple Interest\[ = \dfrac{{800 \times 10 \times 3}}{{100}}\]
Simple Interest \[ = Rs{\text{ }}240\].
The new amount = principle + new interest
\[ = 800 + 240 = 1040\]
Therefore, if the rate of interest is increased by \[\;5\% \], then the amount will increases to $Rs.1040$.
Note:Simple interest is determined by multiplying the daily interest rate by the principal of the number of days that elapse between payments. By using the simple interest formula get the previous interest rate then add the given rate. Find simple interest with the new rate. Now we subtract both the total amount and we will get an increasing amount.
Formula used:$\text{Simple interest = Total amount – Principle}$.
Complete step-by-step answer:
It is given that the Principal amount is \[800\]
Time taken for \[3\] years, Total amount \[\; = 920\]
Increasing interest rate by \[\;5\% \]
First we find
Simple Interest for \[3\] years = $\text{Total amount – Principle}$.
\[\; = 920 - 800 = 120\]
We know that Simple Interest \[ = \dfrac{{Principle \times Time \times Rate}}{{100}}\]
Interest rate\[ = \dfrac{{{\text{Simple Interest}} \times 100}}{{Principle \times Time}}\]
Interest rate\[ = \dfrac{{{\text{120}} \times 100}}{{800 \times 3}}\]
Interest rate \[\; = 5\% \]
Now,
New interest rate\[ = {\text{ }}5{\text{ }} + {\text{ }}5{\text{ }} = {\text{ }}10\% \], Principal \[ = {\text{ }}800\], Time \[ = {\text{ }}3\] years.
Simple Interest\[ = \dfrac{{Principle \times Time \times Rate}}{{100}}\]
Simple Interest\[ = \dfrac{{800 \times 10 \times 3}}{{100}}\]
Simple Interest \[ = Rs{\text{ }}240\].
The new amount = principle + new interest
\[ = 800 + 240 = 1040\]
Therefore, if the rate of interest is increased by \[\;5\% \], then the amount will increases to $Rs.1040$.
Note:Simple interest is determined by multiplying the daily interest rate by the principal of the number of days that elapse between payments. By using the simple interest formula get the previous interest rate then add the given rate. Find simple interest with the new rate. Now we subtract both the total amount and we will get an increasing amount.
Recently Updated Pages
Mark and label the given geoinformation on the outline class 11 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
When people say No pun intended what does that mea class 8 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Name the states which share their boundary with Indias class 9 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Give an account of the Northern Plains of India class 9 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Change the following sentences into negative and interrogative class 10 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Advantages and disadvantages of science
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Trending doubts
Bimbisara was the founder of dynasty A Nanda B Haryanka class 6 social science CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Which are the Top 10 Largest Countries of the World?
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Differentiate between homogeneous and heterogeneous class 12 chemistry CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
10 examples of evaporation in daily life with explanations
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Fill the blanks with the suitable prepositions 1 The class 9 english CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Give 10 examples for herbs , shrubs , climbers , creepers
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
How do you graph the function fx 4x class 9 maths CBSE
![arrow-right](/cdn/images/seo-templates/arrow-right.png)
Difference Between Plant Cell and Animal Cell
![arrow-right](/cdn/images/seo-templates/arrow-right.png)